As I understand it, both you and your opponent have a character on overwatch on the same path. So if one of your characters on that said path activates, your opponent's character on overwatch may attack. If on the other hand one of your opponent's characters activates, your character on overwatch may attack. And if your character on overwatch attacks, I don't think this attack will trigger an overwatch attack from the opposing character. The point is, a character on overwatch may interrupt the active character's activation, but a character on overwatch is not the active character.
Dear FFG, please don't stop the Tannhäuser line completely! Maybe just step down the release of new product to two (maybe one) characters per year just to keep players interested. Maybe release mercenary characters that would be useful for every faction thus every player. Maybe release a pack containing all the existing bonus tokens but no miniature. Anything, please!
I agree.. I believe that you forgo a "classic" activation when you elect to go on overwatch. If you execute an overwatch attack,it is just that (i.e use of overwatch potential) and is not classified as an activation. Therefore, that character is not subject to a counter overwatch attack since that character did not "activate".
My first foray into Tannhauser help..Hope it was useful! :)
p.s Miah.. Huge fan of the Tannhauser vids!! Please do some more!!!! :D